Full Report

A STUDY ON CUSTOMERS PREFERENCE OVER MILK AND
MILK PRODUCTS WITH REFERENCE TO SHREEJI MILK
FOODS PVT LTD
By
…………………………………………
REG No:………………
OF
…………………………………….
……………………………..
A PROJECT REPORT
SUBMITTED TO THE
FACULTY OF MANAGEMENT STUDIES
IN PARTIAL FULLFILMENT OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE
Of
MASTERS OF BUSINESS ADMINISTRATION
JUNE 2009
BONAFIDE CERTIFICATE
Faculty Guide Director
Assessed By
Internal Examiner External Examiner

ACKNOWLEDGEMENT
ABSTRACT
According to Philip kotler”Marketing management is the analysis,

planning ,implementation and control of programmes are designed to bring about desire
exchange with target audience for the purpose of mutual or personal gain, it realize
heavily on the adaptation and co-ordination of product,price,promation and place for
achieving effective response”.All the planning and operations should be customer
oriented.That is the organization and its employees-should be customer oriented.That is
the organization and its employees-should be focused on determining and satisfying
customer needs.All marketing activities in an organization should be co-coordinated
efforts(such as advertising,product planning and pricing)should be combined in a
coherent that an executive should have over all authority and responsibility
complete set of marketing activities.
Customer oriented, co-coordinated marketing is essential
to achieve the organization’s performance objectives.There are certain other objectives
such as profit maximization, market leadership ect.If the firm fails to earn decent
profits,its very existence itself may be handicapped.Some authorities consider profit as
only an incentive but not an objective.Successful distribution of products is another
notable objective of marketing.Effective distribution refers to the free flow of goods and
services.The marketing is very essential for any product and the business expansion.The
topic given to me for the study is on market survey for the customers preference on milk
and milk products with reference to Shreeji. Through this study we would get knowledge
on the customer preference of milk and milk products with reference to Shreeji.At the
end of the study I will gain a good knowledge about the marketing functions of Shreeji
and suggestions are recommended to improve customer satisfaction further.
TABLE OF CONTENT
CHAPTER TITLE PAGE NO
1 CHAPTER 1
INTRODUCTION
1.1 OUT LINE OF THE PROJECT 1
1.1.1 NEED FOR THE STUDY 4
1.1.2 SCOPE OF THE STUDY 5
1.1.3 OBJECTIVES OF THE STUDY 6
1.1.4 LIMITATION OF STUDY 7
1.1.5 RESEARCH METHODOLOGY 8
1.1.6 CHAPTERIZATION 13
1.2 LITERATURE REVIEW
1.2.1 COMPANY PROFILE 14
1.2.2 PRODUCT PROFILE 31
2 CHAPTER 2
DATA ANALYSIS AND INTERPRETATION
2.2.1 PERCENTAGE ANALYSIS 33
2.2 STATISTICAL TOOLS
2.2.1 WEIGHTED AVERAGE 63
2.2.2.a. CHI SQUARE TEST 64
2.2.2.b CHI SQUARE TEST 65
2.2.3.a. ANOVA 66
2.2.3.b. ANOVA 68
3 CHAPTER 3
3.1 FINDINGS 70
3.2 SUGGESTIONS 73
3.3 CONCLUSION 74
4 APPENDICES
REFERENCES
LIST OF TABLES
S.NO TITLE PAGE NO
2.1.1 BRANDS OF MILK 33

2.1.2 CONSUMPTION OF MILK PER DAY 34
2.1.3 CONSUMPTION OF MILK AND MILK 35
PRODUCTS BY SHREEJI USERS.
2.1.4 AWARENESS OF SHREEJI MILK AND MILK 36
PRODUCTS.
2.1.5 AVAILIBILITY OF SHREEJI MILK AND MILK 37
PRODUCTS.
2.1.6 AWARENESS OF MILK SACHETS OF SHREEJI. 38
2.1.7 PREFERENCE OF MILK. 39
2.1.8 AWARENESS OF SHREEJI MILK PRODUCTS 40
2.1.9 PREFERENCE OF MILK PRODUCTS 41
2.1.10 TYPE OF MEDIA SUITABLE FOR SHREEJI MILK 42
PRODUCTS.
2.1.11 INFLUENCER ON PURCHASE OF MILK 43
PRODUCTS.
2.1.12 LEVEL OF SATISFACTION TOWARDS THE 44
PACKAGE OF SHREEJI MILK.
2.1.13 DO THE SHREEJI MILK PRODUCTS FULFILLS 45
THE EXPECTATIONS.
2.1.14 CHANGES EXPECTED FROM SHREEJI USERS 46
2.1.15 DO SHREEJI PRODUCTS ARE MORE HYGEINIC. 47
LIST OF TABLES
S.NO TITLE PAGE NO
2.1.16 WHERE DO YOU GET SHREEJI PRODUCTS 48

2.1.17 DURATION OF CONSUMPTION OF OTHER 49
BRAND MILK.
2.1.18 MODE OF AWARENESS OF OTHER BRAND 50
MILK.
2.1.19 BASED ON CHOOSING OF BRAND 51
2.1.20 LEVEL OF SATISFACTION OF OTHER BRAND 52
MILK.
2.1.21 LEVEL OF SATISFACTION TOWARDS PACKAGE 53
OF OTHER BRAND MILK.
2.1.22 PURCHASE OF SHREEJI MILK PRODUCTS OF 54
OTHER BRAND MILK
2.1.23 PURCHASE OF SHREEJI MILK PRODUCTS 55
EARLIER BY OTHER BRAND USERS
2.1.24 REASONS FOR SHIFTINGFROM SHREEJI 56
2.1.25 WILLINGNESS TO SHIFT TO SHREEJI FROM 57
OTHER BRANDS
2.1.26 SEX 58
2.1.27 AGE 59
2.1.28 OCCUPATION 60
2.1.29 INCOME 61
2.1.30 FAMILY MEMBERS 62
LIST OF CHARTS
S.NO TITLE PAGE NO
2.1.1 BRANDS OF MILK 33
2.1.2 CONSUMPTION OF MILK PER DAY 34
2.1.3 CONSUMPTION OF MILK AND MILK 35
PRODUCTS BY SHREEJI USERS.
2.1.4 AWARENESS OF SHREEJI MILK AND MILK 36
PRODUCTS.
2.1.5 AVAILIBILITY OF SHREEJI MILK AND MILK 37
PRODUCTS.
2.1.6 AWARENESS OF MILK SACHETS OF 38
SHREEJI.
2.1.7 PREFERENCE OF MILK. 39
2.1.8 AWARENESS OF SHREEJI MILK PRODUCTS 40
2.1.9 PREFERENCE OF MILK PRODUCTS 41
2.1.10 TYPE OF MEDIA SUITABLE FOR SHREEJI MILK 42
PRODUCTS.
2.1.11 INFLUENCER ON PURCHASE OF MILK 43
PRODUCTS.
2.1.12 LEVEL OF SATISFACTION TOWARDS THE 44
PACKAGE OF SHREEJI MILK.
2.1.13 DO THE SHREEJI MILK PRODUCTS FULFILLS 45
THE EXPECTATIONS.
2.1.14 CHANGES EXPECTED FROM SHREEJI USERS 46
2.1.15 DO SHREEJI MILK PRODUCTS ARE MORE 47

HYGEINIC.
LIST OF CHARTS
S.NO TITLE PAGE NO

2.1.16 WHERE DO YOU GET SHREEJI PRODUCTS 48
2.1.17 DURATION OF CONSUMPTION OF OTHER 49
BRAND MILK.
2.1.18 MODE OF AWARENESS OF OTHER BRAND 50
MILK.
2.1.19 BASED ON CHOOSING OF BRAND 51
2.1.20 LEVEL OF SATISFACTION OF OTHER BRAND 52
MILK.
2.1.21 LEVEL OF SATISFACTION TOWARDS PACKAGE 53
OF OTHER BRAND MILK.
2.1.22 PURCHASE OF SHREEJI MILK PRODUCTS OF 54
OTHER BRAND MILK
2.1.23 PURCHASE OF SHREEJI MILK PRODUCTS 55
EARLIER BY OTHER BRAND USERS
2.1.24 REASONS FOR SHIFTINGFROM SHREEJI 56
2.1.25 WILLINGNESS TO SHIFT TO SHREEJI FROM 57
OTHER BRANDS
2.1.26 SEX 58
2.1.27 AGE 59
2.1.28 OCCUPATION 60
2.1.29 INCOME 61
2.1.30 FAMILY MEMBERS 62
1
CHAPTER 1
INTRODUCTION
1.1 OUT LINE OF THE PROJECT
A STUDY OF CUSTOMERS PREFERENCE OVER MILK AND
MILK PRODUCTS -WITH REFERENCE TO SHREEJI.
A study on customers preference of milk and milk products with

reference to Shreeji is undertaken for assessing the customers behaviour towards Shreeji
milk and milk products and to understand the expectations of the customers towards milk
and milk products which will in turn help to take appropriate action by the management
for removing the short falls.For this purpose the following parameters were taken in to
consideration and questionnaire was prepared to elicit the information.
SEX
AGE
OCCUPATION
MONTHLY INCOME
SIZE OF THE FAMILY
To interrogate customers area-sampling system was adopted, since
the population is undefined so 200 customers were interrogated to elicit the information,
which are analyzed, interpreted and placed under with comments, charts and findings.
John McKean, in an excellent book, Customers are People –The
Human Touch thinks of the organization-customer interaction as a series of cascading
touch points. Those touch points comprise the customer environment and it is through
interacting with that environment that customer preference is formed.
The idea that customers prefer one product or one service over
another is not new. The ability to identify and measure the elements of such preference
decisions with any accuracy and reliability has only recently become available. Research
into this area of consumer behavior has brought understanding to some of the major
issues with standard customer satisfaction research. Most importantly, we have come to
realize that high customer satisfaction does not assure continued customer
2
preference . Satisfaction research over the past fifteen years demonstrates that high
satisfaction scores, while a measure of organization performance on a set of important
criteria, do not adequately explain the composition of preference formation and therefore
often serve as insufficient predictors of sustained preference or what is normally referred
to as customer loyalty.
Loyalty as a concept has also shown itself to be difficult to define.
Like beauty, loyalty is truly in the eye of the beholder. We understand there are
different types and degrees of loyalty and some of these are not appropriate in describing
the relationship between a consumer and a company. However, preference (defined as
the power or ability to choose one thing over another with the anticipation that the choice
will result in greater satisfaction,greater capability or improved performance) has
demonstrated the ability to be effectively measured and to provide meaningful insight
into the choices consumers make when selecting one provider over another and when
determining to continue a relationship over time.
Preference is formed when the customer is bonded to your
company through the establishment of a mutual benefit. Successful companies therefore
go beyond delivery of a commodity or service; they pursue the development of a
relationship with their customers. This bonded relationship will be more likely to survive
competitive attacks than the mere purveying of goods or services or an over reliance on
aggressive pricing models.One of the components of the Preference Formation Process is
the development of a Preference Formation Profile. This profile breaks out the required
attributes of each stage of preference formation.
Notice that the evaluation experience, is not simply focused on
the performance and reliability issues of the milk products; but also on how the customer
is treated and that the emotive elements of customer treatment can be as clearly defined
and measured.However,just as different individuals want different types of milk and milk
product with different features; different people have different emotive demands as well.
The key to understanding customer preference is to understand how many evaluation
experiences exist within a single market, what the mix of quality and taste provide greater
demand for milk products this leads to preference demand that is a requirement within
3
several of the identified customer segments.Such understanding requires both qualitative
and quantitative rigor.Within the framework customer satisfaction can begin to play a
very important role as a measure of a company’s ability to deliver and execute against
preference evaluation elements of a given customer segment.
These expectations can now be differentiated into expectants – basic, cost-of-
entry preference expectations,satisfiers - preference expectations that help to constrain
abandonment or churn and attractors - preference enhancements (often focused on the
emotive components) that attract new customers.
The power or ability to choose one thing over another with the anticipation that
the choice will result in greater satisfaction,greater capability or improved
performance.The theory of reasoned action assumes a consequence for the action taken.
We prefer some product, someone, or some service because we determined the object
was best aligned with our performance and emotive requirements as judged through our
comparative norms. We evaluate the performance in light of how well the milk
products,service meets our preference expectations.
Notice that the evaluation experience, to simply focused on the performance and
reliability issues of the Milk products; but also on how the customer is treated and that
the emotive elements of customer treatment can be as clearly defined and measured by
way of customer satifaction.The key to understanding customer preference is to
understand how many evaluation experience.
The essentiality for preference formation and the combination and sequence of
such touch points that result in a customer environment that maximizes organization
ability to construct sustained customer preference.
1.1.1 NEED FOR THE STUDY
Management needs to know the customer preference information

in order to take sound decisions.Surveys on customer preference can produce favourable
or unfavourable result,but bringing a number of benefits to management.A study on
customer preference helps to understand the performance of the organization and the
behaviour of the customers.The study of customer preference indicates the expectations
of the customers.Customer preference helps to understand the loyalty of the customer
towards the products.The management finds a possible way to fulfill the expectations of
customers and attracts new customers.
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1.1.2 SCOPE OF THE STUDY
The study aims to find the customers preference of milk an
milk products with reference to Shreeji. The study is restricted to information regarding
the customers’s likes and dislikes,their expectations,personal decisions and family
decisions and loyalty of the customers.The study has been carried out for period of 3
months and has focused on all type of customers.

6
1.1.3 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE
A study on customers preference over milk and milk products with reference to
Shreeji.
SECONDARY OBJECTIVES
• To understand the loyalty of the customers towards the milk and its products with
reference to Shreeji
• To identify customers expectations towards the milk products.
• To identify the performance of the organization and its products.
• To understand customers behaviour in choosing the milk and its products.
• To understand customer satisfaction over milk and its products with reference to
Shreeji
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1.1.4 LIMITATIONS OF THE STUDY
 The responses given by the respondents may not be true.
 The respondents may be careless in responding to the questionnaire.
 The respondents may be illiterate.
 The respondents may be unaware about the various Shreeji milk and milk
products
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1.1.5 RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge.One can also

define research as a scientific and systematic search for pertinent information on a
specific
topic.In fact,research is an art of scientific investigation.
• Research is a process of systemic study.
• Research is in depth study about the particular problem.
• Re-search is for any particular topic.
• Research is a search of knowledge.
• Research is a movement from known to unknown.
• Research is an area of investigation which includes collection,analysis and
interpretation of data.
• Research can be called as voyage of discovery.
• Research has to proceed systematically in the already planned direction with the
help of a number of step in sequence.To make the research systemized the researcher has
to adopt certain methods.The methods adopted by the researcher for completing the
project is called Research Methodology.
Data becomes information only when a proper methodology is adopted.Thus we
say methodology is a tool,which process the date to a reliable information.the present
chapter attempt to highlight the Research Methodology adopted in this project.
Definition of Research
According to D.Slesinger and M.Stephenson in the encyclopaedia of social
sciences define research as “The manipulation of things,concepts or symbols for the
purpose of generalizing to extent,correct or verify knowledge aids in construction of
theory or in the practice of an art”.
Research Design
The formidable problem that follows the task of defining the research problem is
the preparation of the design of the research project,popularly known as the Research
design.A Research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with economy in
procedure.
9
A Research is purely and simply the framework and plan for the study that guides the
collection and analysis of data.It is a blue print that is followed in completing a study.
Types of Research Design
1.Exploratory research design. 2.Descriptive research design
3.Experimental research design.
Descriptive and Diagnostic Research design
The researcher has to decide which type of data is useful for the
study and accordingly has to select any one or both the method for data collection.
Descriptive research design is concerned with the research studies
with a focus on the characteristics of a particular individual,or group whereas diagonastic
research design determine the frequency with which something occurs or its associated
are examples of Diagnostic.
Data Collection Method
Data refers to information or facts.It is not only refers numerical figures but also
includes descriptive facts. The method of data collection includes two types for the study,
such as primary data and secondary data.
Primary Data Collection Method
Primary data is the data that is collected for the first time by the researcher.The
Primary data are collected with specific set of objective to assess the current status of any
variable studied.Primary data is useful only for particular period.
Methods of Primary Data Collection
The Main four methods used in primary data collection are:
a. Questionnaire b.Schedule
c.Interview d.Observation
In this study questionnaire method have been used
QUESTIONNAIRE
In this method,pre printed list of questions arrange in a sequence which is used
by the researcher for collecting data.The questionnaire is filled by the respondents.The
questionnaire is considered as the heart of the survey..
SAMPLING DESIGN- A Sample design is a definite plan for obtaining a sample from a
given population. It refers to the technique or the procedure that the researcher would
10
adopt in selecting items for the sample. Sample design may as well lay down the number
of items to be including in the sample. i.e.,the size of the sample.Sample design is
determined before data are collected.There are many sample designs from which a
researcher can
choose.Some designs are relatively more precise and easier to apply than
others.Researcher must select/prepare a sample design that should be reliable and
appropriate for his research study.
UNIVERSE
All the items under consideration in any field of enquiry constitute a
‘universe’ or ‘population’ the term universe refers to the total items through which
information can begathered from the population. In this the population is infinity. It is
pivotal point of research.
SAMPLE FRAME
The sample frame is the list of all sample units.It is the study of the researcher to
frame the samples for easy and best data collection.In this the sample is 200,sizes are
mainly decided on the basis of the selection of the statistical tools.The selection of the
appropriate samples size can be done by statistical tool.
SAMPLE PROCEDURE
Sampling is a procedure by which the respondents are selected. There are
basically two types of sampling methods are:
1.Probability sampling methods.
2.Non-Probability sampling methods.
In this study area sampling method was adopted(Probability Sampling) the required
number of customers were not selected according to area sampling procedure but the
required number of sample (sample size 200) were selected.
SAMPLING TECHNIQUE
In this we have used probability sampling.The term probability refers to the
samples having an equal chance of being selected.In this we have used area sampling.The
area sampling refers to the population being divided into various areas and samples are
collected from STATISTICAL TOOLS “By statistics we mean aggregates of facts
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to a marked extend by multiplicity of causes, numerically expressed, enumerated
according to reasonable standard of accuracy, collected in a systematic manner for a
predetermined purpose and place in relation to each other.”
In this study the researcher is going to apply with percentage analysis, chi-square, bar
diagram and pie charts and anova.
PERCENTAGE METHOD
In this position of an individual observation in a distribution is described.The
most convention for describing the position of an individual score in distribution of
scores is a percentile method.
PERCENTAGE N=100* (CUMULATIVE fi/n)
CHI-SQUARE
Chi-square applied in statistics to test the goodness of fit to verify the distribution
ob observed data with assumed theoretical distribution.Therefore it is a measure to study
whether two characters are dependent or independent.Thus chi-square test describes the
discrepancy between actual data and expected frequencies.
ASSUMPTION
1.The two set of data must be based on the same sample size.
2.There must be two observed set of data or expected set of data in rows
and columns
3.Each cell in the data contains an observed or expected count of five or
larger.
X ^2=Σ(Oi-Ei)^2/Ei
APPLICATION OF CHI-SQUARE
TO TEST THE GOODNESS OF FIT
If the calculated value is less than the tabulated value at a certain level of
significance, the fit considered being good and hence the hypothesis is accepted.But
when it is vice-versa, When the calculated value is greater than the tabulated value,then it
is not considered being the goodness of fit.
TO TEST INDEPENDENCE OF TWO ATTRIBUTES
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This test enables to explain whether two attributes are associated or not.In this
null hypothesis, the two attributes that are independent, which means that, one factor does
not have any associates with each other.
In this case if the calculated value is less than its table value, then the hypothesis
which means the two attributes is independent or not associated .It is vice-versa when the
calculated value is greater than the tabulated value .The attributes are associated.
WEIGHTED AVERAGE:
Weighted average is a number standing for the relative important of the items.
Weighted average can be defined as an average whose component items are multiplied by
certain value and the aggregate of the products are divided by total of weight .It is being
used to analyze Likerts rating scale.
X=ΣXW/ΣW
Analysis of variance – (ANOVA):-
The analysis of variance is a method which separates the variation ascribable to
one set of causes from the variation ascribable to other set. The first object of the analysis
of variance is to obtain a measure of the total variation within the series and the second
object is to find a measure of variation between or among the components. Then the test
of significance of difference between the variation in two series or more may be
measured. Thus we can also test the hypothesis that the means of all the components
constituting a population are equal to the mean of the population or that the samples have
come from the same population. It is used to test whether the means of a number of
populations are equal.In the manifold classification we consider two or more
characteristics or attributes. The analysis in that case will get extended to include the
sum of squares between rows. This type of classification is also called as an two way
anova.
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1.1.6 CHAPTERISATION
Chapter 1 includes the Introduction of the study,Need of the study,then Scope of
the study,Objectives of the study, then regarding Research Methodology, then about the
limitations of the study,then the theory perspective of the study.
Chapter 2 includes Data Analysis and interpretation, in which analysis about the
study is being made with the help of tables, bar diagrams, and pie diagrams and statistical
tools such as Chi-square is being used.
Chapter 3 includes the findings of the study,suggestions and conclusions of the
study, appendices, questionnaire and references.
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1.2 LITERATURE REVIEW
1.2.1COMPANY PROFILE
The first cooperative dairy was set up at Chennai city during the year 1927.The
State Dairy Development Department in the State was established in 1958.The first
modern Dairy plant with a capacity to handle 50000 litres per day of pasteurized milk
was established in the year 1963 at Madhavaram near Chennai with the aid from New
Zealand.A dairy to handle 50000 litres of milk per day was set up at Madurai with the
assistance of UNICEF in 1967.The State department for dairying started milk
procurement through organized village cooperatives in the year 1962.The system
consisted of supervised milking at the village level and transport of the raw milk in
aluminum cans through hired transport vehicles to milk chilling plant or directly to the
dairy.The farmers were paid on volume basis for the milk purchased with different price
structure for cow milk and buffalo milk.The societies advanced loans to the farmers for
purchase of milk animals.Under the Five year plan of the State Government a number of
pasteurization plants were set up in the cooperative sector in major towns.The milk
procurement during 1972 was around 0.60 LLPD against the present procurement of
15.56 LLPD.
LIQUID MILK DIVISION
Liquid milk Division (LMD) is functioning at Nandanam with 24 zonal
offices,headed by the Dy.Genderal Manager (process-planning and marketing).This unit
is responsible for marketing milk in sachets at the Chennai Metro and its Suburbs.Toned
Milk,Standardized milk,Full Cream Milk and Double Toned Milk are being marketed in
sachets.The average sale of milk in sachets per day is around 7.25 lakh litres.
The marketing activities are carried out by the Sachet Milk Division through its
24 Zonal offices located at various parts of the metro.Selling and renewal of monthly
milk cards,directly and through MCCS, arranging cash sales of milk,monitoring milk
distribution and other sales activities are being looked after by the Zonal Offices.Monthly
milk cards are available in ½ litre and its multiples.5 litre weekly commercial cards are
being issued for the agents and traders.Further in order to boost the sale of Shreeji milk
through retail outlets and bulk order,the federation have appointed 48 private milk
15
Distributors and they are getting incentives depending theira quantum of off-
take.Through the distributors,the federation is selling about 2.5 lakh litres daily.Keeping
the convenience of consumers in mind,the milk cards are issued at the depots on specified
dates in addition to the regular sale at zonal offices and co-op.societies on all working
days.
The control rooms located at Ambattur Dairy, Madhavaram Dairy and
Sholingnallur Dairy are processing the indent received from zonal offices and arranging
the milk dispatches to the depots/institutions/distributors.
There are 68 milk distribution routes covering 529 depots,169 delivery points and
202 institutions in the metro.Out of the 529 depots,238 depots are being managed by milk
consumer cooperative societies.29 routes from central diary,26 routes from Ambattur
dairy and 13 routes Sholinganallur are being operated.A round the clock customer
complaints service is in operation in Nandanam to attend the customer complaint.
Consumer complaints on all fonts are being attended promptly and swiftly to ensure
trouble free milk distribution.Further this cell attends the messages received from the
distribution vehicles and ensures smooth distribution of milk.In order to be more
consumers friendly ,the Federation has provided Toll free Telephone(1600 443300)to
enable the consumers to register their suggestions and complaints.
Consumers meets and consumer visits to dairies are being arranged from time to
time so as to make the consumers understand the dairy operations and the hygienic
ambience under which it is carried out.In the highly competitive milk-marketing scenario
at the metro,these activities are helping the Federation in a big way.
ABOUT THE FEDERATION:

Dairy sector has assumed much significance by generating income not only to the
rural but also to the urban and semi-urban population in the state especially to women
folk by providing self employment opportunity. Milk and milk products provide
essential nutrition to all walks of life. It provides livelihood to millions of small and
marginal farmers in the state. Tamilnadu is an agricultural oriented State and majority of
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the farmers owns cattle. Dairying provides the main source of income next to agriculture.
In a tropical country like India, agriculture may fail sometimes, due to monsoon failure
but dairying never fails and gives them regular, steady income.
The State Dairy Development Department was established in 1958. The
administrative and statutory controls over all the milk cooperatives in the State were
transferred to the Dairy Development Department on 1.8.1965. The Commissioner for
Milk Production and Dairy Development was made as the functional Registrar under the
Tamilnadu Cooperative Societies Act. With the advent of 'Anand pattern' in the State of
Tamilnadu, Tamilnadu Co-operative Milk Producers' Federation Limited was registered
on 1st February 1981. The commercial activities of Department such as Milk
Procurement, Processing, packing and sale of milk to the consumers etc., hitherto dealt
with by the Tamilnadu Dairy development Corporation Ltd., was transferred to the newly
registered Tamilnadu Co-operative Milk producers' Federation Ltd.
In the wake of liberalization policy, private dairies have entered in the field of
dairying. As per the direction of Hon'ble Chief Minister of Tamilnadu high priority has
been given for improving the performance of Co-operatives by adopting a systematic
approach and proper strategy implementation in Milk Co-operatives. Significant
achievement has been made by Milk Producers' Cooperative Societies, Unions and
Federation in the State of Tamilnadu.
TWO FOLD OBJECTIVES OF THE DAIRY DEVELOPMENT

DEPARTMENT
1. Assure a remunerative price for the milk produced by the milk producers' societies
through a stable, steady and well organized market support.
2. Distribution of quality milk and milk products at reasonable prices to the consumers.
Bearing the above two objectives in mind, the following major multifarious activities are
undertaken by the Dairy Development Department.
Provision of free veterinary health cover to all animals owned by the members of
milk cooperatives, implementation of Artificial Insemination.Programme, supply of
balanced cattle feed and inculcation of farmers with the modern animal husbandry
17
methods and practices. All activities, which are essential for the up gradation of the milch
animals and improving their productivity in the long run, are also to be imparted on them.
Provision/creation of necessary infrastructure facilities for the enhancement of
processing and marketing has been made by way of establishing new chilling centres,
pasteurization plants and adoption of modern marketing system in order to supply quality
milk to the consumers.
DEPARTMENTAL SET UP
The Commissioner for Milk Production and Dairy Development is the Head of
the Dairy Development Department in Tamilnadu. He is Functional Registrar in respect
of Dairy Cooperatives. He is also the Ex officio Managing Director of the Tamilnadu
Cooperative Milk Producers' Federation Ltd.,The Commissioner for Milk Production and
Dairy Development exercises all the statutory powers with regard to the registration of
societies, supervision, inspection, inquiry, disputes, liquidation of milk cooperatives
including the District Cooperative Milk Producers' Unions and Federation under the
relevant provisions of the Tamilnadu Cooperative Societies Act 1983 and Tamilnadu
Cooperatives Societies Rules 1988. In discharging the statutory functions, the
Commissioner for Milk Production and Dairy Development is assisted by the Deputy
Milk Commissioner (Cooperation) in the rank of Joint Registrar of Cooperative Societies
and a Deputy Registrar at the Headquarters besides 23 Deputy Registrars at the District
level by way of conferring the powers of the Functional Registrar. The details of staff
working in the office of the Commissioner for Milk Production and Dairy Development
are enclosed in the annexure.
FUNCTIONS OF THE DAIRY DEVELOPMENT DEPARTMENT
The main functions of the Dairy Development Department are Orgainsation of
societies, registration of societies, supervision and control of primary milk cooperatives,
District Cooperative Milk Producers Union and Tamilnadu Cooperative Milk Producers
Federation.
The Dairy Development Department exercises statutory function - like Inquiry,
Inspection, Surcharge and Super session, appointment of special officers liquidation and
winding up of dormant Societies etc. The Commissioner for Milk Production and Dairy
18
Development, Deputy Milk Commissioner (Co-operation), and Circle Deputy Registrars
(Dairying) are vested with quasi-Judicial powers in respect of settlement of disputes,
appeal, revision and review under various provisions of Tamilnadu Cooperative Societies
Act 1983 & the rules made there under.
The Commissioner for Milk Production and Dairy Development has been
designated as the State Registering Authority for the state of Tamilnadu, under the
provisions of Milk and Milk Products Order'92. All the Dairy units including private
Dairies handling more than 10,000 lpd of milk or Milk Products containing milk solids in
excess of 500 Metric tones per annum has to obtain registration certificate under the
provision of Milk and Milk Products Order'92. The Commissioner for Milk Production
and Dairy Development / State Registering Authority has been conferred with powers to
register the dairy units having handling capacity from 10,000 LPD to 2 lakh LPD. The
Commissioner / State Registering Authority / Deputy Milk Commissioner (Co-
operation) / District collector and Deputy registrars have been authorised to carry out
supervision and periodic inspection of the dairies.
PRIMARY DAIRY COOPERATIVES
A minimum of 25 or more individuals competent to contract under section 11 of
the Indian Contract Act of 1872 owning milch animals can form a primary Dairy
Cooperative Society, with one or more villages as its area of operation. Such persons
have to approach the Circle Deputy Registrar (Dairying) office functioning at the District
for further guidance. The members of Primary Cooperative milk society have to supply
milk to the Society which will procure milk on quality basis and they will receive milk
cost once in 10 days / 15 days from the Society. Milch animals are provided with free
veterinary health cover, artificial insemination and the supply of balanced cattle feed.
Induction of farmers on modern animal husbandry practices are aimed at upgrading the
milch animals and thereby improving their productivity in the long run for the benefit of
the members.
WOMEN MILK PRODUCERS COOPERATIVE SOCIETIES
In order to encourage the women member to contribute more to the dairy sector
they are called upon to organise women milk producers' cooperative societies in their
19
respective areas. There are 1404 women milk producers cooperative societies
functioning in Tamilnadu.
APPOINTMENT OF SPECIAL OFFICERS
Primary Milk Cooperative Societies and District Cooperative Milk Producers
Unions and Federation were previously administered by elected Boards. As the terms of
office of the members of elected Board already expired and as they were continuing only
on extended term of office as per section 33(10)(aa) of Tamilnadu Cooperative Societies
Act 1983, the Government issued orders terminating the extended term of office of
members of Boards of these societies and the Special Officers have been appointed under
section 89(1) of Tamilnadu Cooperative Societies Act 1983. All the primary Milk
Cooperative Societies are now functioning under the Control of Special Officers since
26.5.2001. In respect of District Cooperative Milk Producers Unions, the Collectors of
respective Districts have been appointed as Special Officers and for Tamilnadu
Cooperative Milk Producers Federation Ltd., the Managing Director of the Federation
has been appointed as Special Officer.
COOPERATIVE FUNCTIONS OF DISTRICT MILK PRODUCERS
UNIONS
1) There are 17 District Cooperative Milk Producers' Unions functioning in the State of
Tamilnadu covering 28 Districts.
2) There are 16 Dairies in District Co-operative Milk Producers' Unions with an installed
processing capacity of 18.76 LLPD.
3) There are 39 Chilling Centres in District Co-operative Milk Producers' Unions with
installed chilling capacities of 11.64 LLPD respectively.
4) Establishment of chilling centres
5) Formation of new milk routes to collect the milk produced by the member societies
6) Collection of milk from societies, process and pack in modern dairy plants by
maintaining quality standards.
7) Supply of quality milk to Chennai Metro under hygienic conditions.
8) Fixation of procurement and selling price of Milk
9) Increase of liquid milk sales by introducing innovative sales promotional activities.
20
10) Supply of inputs to the member societies obtained from unions.
11) Render Veterinary Health Service and emergency service to the cattle of members of
primaries
12) Impart training on first aid and on Artificial insemination to the staff of member
societies.
13) Extending Artificial insemination services to the cattle owned by the members of
Milk Cooperative Societies.
14) Providing milk cans, milk 'O' testers and LN2 containers.
15) Salem, Erode, Madurai and Dharmapuri Unions are acting as Feeder Balance Dairies.
Surplus milk in the District Unions, after meeting their local sales is diverted to the
nearest Feeder Balancing Dairies for conversion into milk products, such as Skim Milk
Powder, Butter and Ghee.
16) The three Cattle Feed Plants at Madhavaram, Erode and Kappalur are run by the
Kancheepuram -Tiruvallur Union, Erode Union, Madurai Union respectively. The
production capacity of these cattle feed plants is 100 MT per day each. The balanced
cattle feed is produced in the form of pellets and mash are supplied to the members of the
Milk Co-operatives, livestock farms manned by the Animal Husbandry Department and
to various local bodies including the Corporation of Chennai.
FUNCTIONS OF FEDERATION:
The Tamilnadu Co-operative Milk Producers' Federation Limited is an apex body of 17
District Cooperative Milk Producers' Unions. The Federation has four dairy plants in
Chennai, one at Ambattur with a capacity of 4.00 lakh litres per day, another at
Madhavaram with a capacity of 2.00 lakh litres per day and the third dairy at
Sholinganallur with a capacity of 4.00 lakh litres per day. These dairies collect milk from
District Unions process and pack in sachets and send for sale to the consumers in and
around Chennai City. The fourth dairy at Ayanavaram is engaged in the manufacture of
milk products such as Yogurt, ice cream, khova and Mysorpa.
The marketing of Milk and Milk Products of the Federation is being carried out by the
three wings namely,
1. Metro Liquid milk marketing.
21
2. Metro Milk Product marketing.
3. Up country marketing.
Marketing of the products in Chennai Metro and suburbs are directly carried out by the
product wing of the Federation located at Nandanam. The products are stored at the
godown at Ambattur and distributed to the outlets.
The sales of milk and milk product is being carried out through 36 parlours, 125
Franchise Retail Outlets (FROs), 8 Wholesale dealers, 3000 Retailers and 44 Milk
Consumers' Co-operative Societies. Federation also caters to the needs for functions like
marriages by booking Special Orders.
Standardized milk is being sold through 217 Automatic Vending Machines and
178 FRPs to the city consumers. Milk products are also sold in certain AVMs Unit.
Recently, sachet milk sales are also introduced in AVMs unit.
The Federation coordinates the activities of the District Unions and provides technical
expertise as and when required and also undertakes planning and erection, expansion and
commissioning of Dairy Plants and Chilling Centres of the unions on turnkey basis. The
Federation helps the unions in marketing their by products like skim milk powder, ghee,
butter and cheese in Tamilnadu and in other States.
PROCUREMENT PRICE:
The procurement price payable to milk producers was revised from 01.12.2001 as
follows: Period Buffalo milk Cow milk Price per Kg/Fat Price per Litre Price per
Kg/Total solids Price per Litre (In Rs.) 1.12.2001 to till date 156.28 to 163.40 10.94 to
11.44 69.23 to 73.08 9.00 to 9.50
SELLING PRICE:
The selling price of Toned / Standardised / Full Cream milk in sachets and in
AVM units are as detailed below:
Toned Milk (Per Litre)Standardised Milk (Per litre) Full Cream Milk (Per litre)
Standardised Milk (AVM) (Per litre)
TONED MILK Card 12.50
Cash 14.00
STANDARDISED MILK Card 14.50
22
Cash 16.00
FULL CREAM MILK Card 16.50
Cash 18.00
STANDARDISED MILK (AVM)Card 14.00
Cash 14.50
INPUT PROGRAMME - MILK PRODUCTION ENHANCEMENT
PROGRAMME:
13.07 lakh cows and 2.72 lakh buffaloes are under the Co-operative fold and they
are provided with breeding cover through artificial insemination by using frozen semen.
Producer members are supplied with cattle feed and fodder for their animals. Health
cover through mobile veterinary units and vaccination against Foot and Mouth Disease
and Theileriasis diseases are also provided.
ARTIFICIAL INSEMINATION AND ANIMAL HEALTH
ACTIVITIES:
The Artificial Insemination facilities are made available in 2515 Dairy
Cooperative Societies. The village level workers in the Milk Producers Cooperative
Societies have been imparted training in artificial insemination technology. During the
year 2002-2003, 12.26 lakh milch cattle were inseminated with frozen semen and 3.07
lakh calves have born during the year 2002-2003. District Co-operative Milk Producers'
Unions are operating mobile veterinary units with qualified veterinary doctors. 4539
Dairy Cooperative Societies are covered under animal health programme. They have
treated 5.35 lakh cases in 2002-2003. To attend the distress calls from the members,
emergency veterinary units are also operated. During the year 2002-2003, 56 regular
veterinary units and 35 emergency units are functioning under the control of District Co-
operative Milk Producers' Unions.
BREEDING PROGRAMME:
As a result of artificial insemination, 1.48 lakhs female calves of superior germ
plasm were born during the year 2002-2003. Frozen semen straws of 10.83 lakhs of
White Cattle and 2.95 lakhs of Black Cattle were produced at the Nucleus Jersey and
23
Stud Farm (NJF) at Udhagamandalam and in the Buffalo Frozen Semen Station (BFSS)
at Erode respectively during the year 2002-2003.
REHABILITATION OF UNIONS 9th FIVE YEAR PLAN-CENTRAL

SECTOR PLAN SCHEME-ASSISTANCE TO CO-OPERATIVES
The Government of India formulated a scheme to rehabilitate District Co-
operative Milk producers' Unions, which envisages 50% grant from the State
Government and 50% matching grant from Government of India to the loss making
District Co-operative Milk Producers' Unions subject to certain conditions laid down on
this issue.
National Dairy Development Board after their preliminary assessment have
selected two District Unions namely Erode and Villupuram. Under this scheme
Government of Tamilnadu have released a sum of Rs.6.50 Crore. Govt. of India have
released Rs.1.50 crore and Rs.2.25 crore, towards the first year share for Villupuram
Union and Erode Union respectively.Both the Unions have utilised the amount to settle
the milk cost dues to the producers.
SUPPORT TO TRAINING AND EMPLOYMENT PROGRAMME
(STEP):
In order to enhance the socio-economic conditions of the village women who do
not own any property, those who are heading the family, the families of Scheduled Castes
and Scheduled Tribes and those who are interested in the Dairy sector, a scheme of
Support to Training and Employment Programme for women was introduced during last
year. The cost of the scheme is Rs.649.463 lakhs. This scheme will be implemented in 3
years in the area of operation of Salem, Erode, Coimbatore, Vellore, Villipuram,
Dharmapuri and Tiruchirapalli District Cooperative Milk Producers Unions and 10,000
women will be given training on Act and Rules, artificial insemination, First aid, use of
Milk Testing Instruments, deduction of adulteration in Milk and Dairy Management
through which they will be able to get a regular income. This scheme is implemented
24
with 90% assistance from Government of India while the remaining 10% is met by the
District Cooperative Milk Producers Unions on behalf of the beneficiaries.
The first installment of Rs.132.48 lakhs has been received from the Government
of India out of which Rs.111.08 lakhs has been spent. Against the targeted formation of
58 women Milk Producers Cooperative Societies during 2002-2003, 50 women
Cooperative Milk Producers Societies have been formed and 3590 women have been
enrolled as members.
PERFORMANCE OF COOPERATIVES DURING THE YEAR 2002-
2003 AT PRIMARY LEVEL MILK PROCUREMENT BY TESTING
In order to ensure better price to members' level and procurement of quality milk,
the system of testing of milk is introduced at primary level. The steps taken to improve
the quality of milk yield good results. The quality of milk received at Chennai with
regard to FAT is increased from 4.3 to 4.5 and the SNF Present in the milk is increased
from 8.2 to 8.3. With the result quality milk is supplied to consumers.
ISSUE OF UNIFORMS TO EMPLOYEES OF PRIMARY CO-OP.

SOCIETIES
The Tamilnadu Cooperative Milk Producers Federation & District Cooperative
Milk Producers' Union is issuing uniforms to their employees. The employees of
primary milk cooperative societies also demanded the issue of uniforms to them. To
ensure identity of the employees of primary Dairy Cooperative Societies and to
encourage them in their fieldwork, uniforms were provided in the last financial year. The
cost was met by the societies concerned and 28500 employees of Primary Milk
Cooperative Societies were benefited.
MILK COST PAYMENT TO THE PRODUCERS
A total sum of Rs.35 crore was pending payment from society to producers as on
May 2001. Pursuant to the efforts taken by the Federation and District Unions and as per
the orders of the Hon'ble Chief Minister in clearing the dues in the last financial year, the
payment of dues to the milk producers have been substantially reduced to Rs.12 crore as
on April 2003.
25
THE FORMATION OF MILK PRODUCERS COOPERATIVE
SOCIETIES DURING 2002-2003
195 Milk Producers Cooperative Societies have been organised up to 31.03.2003.

PROFIT MAKING SOCIETIES
During 2000-2001, out of 7626 functioning societies, only 3950 Primary Milk
Producers Cooperative Societies were earning profit. To extend the financial benefits
such as payment of milk cost in time, payment of bonus and "patronage rebate" to the
milk pouring members of the Primary Milk Producers' Cooperative Societies, every
society has to function on profit. Keeping this in mind, effective steps were taken to
improve the finances of the societies under the direction of Hon'ble Chief Minister. As a
result of such effective measures all the 6980 functioning societies are working on profit
in the year 2002-2003.
AT DISTRICT COOPERATIVE MILK PRODUCERS UNIONS

LEVEL INTRODUCTION OF COMMON MNEMONIC SYMBOL
The District Cooperative Milk Producers Unions at Salem, Madurai, Coimbatore,
Trichy, Erode and the Nilgiris have adopted Common Mnemonic Symbol which
symbolise the supply of quality milk to the consumers from the year 2002-2003. This has
paved the way for popularizing the brand 'Shreeji' in a short span of time.
ISO 9002 - 1994 CERTIFICATE . Salem District Co-operative Milk Producers' Union
has obtained ISO 9002 - 1994 Certificate in the year 2002-2003.EXPORT LICENCE
CERTIFICATE TO MILK PRODUCTS . The Salem and Erode powder plant have
obtained Export License from the competent authority to export Skim Milk Powder.
MILK PRODUCT SALE PERFORMANCE:
During the previous regime i.e. from 1996-2001 the average sales of Ghee per
year was only 3411 M. T. Similarly the average sale of Skim Milk Powder was 2647
M.T per year. As a result of constructive measures taken on the directions of Hon'ble
Chief Minister, the Federation and Unions have increased the average sales of Ghee to
6477 M.T per year in the last two years by achieving a two fold increase. Similarly the
26
average sale of Skimmed Milk Powder is increased to 9127 M.T by achieving a four time
increase.
INFRASTRUCTURE DEVELOPMENT
A new Chilling Centre with a capacity of 50,000 lpd has been established at
Manaparai town in Trichy district during the year 2002-03 at an estimated cost of Rs.
57.50 lakhs. The Paramakudi Chilling Centre has been expanded with packing facilities
with an estimated cost of Rs.42 lakhs in order to provide hygienic and improved quality
milk at Ramanathapuram District. Likewise the infrastructure facilities in the dairies at
Salem and Trichy have also been strengthened.
PROFIT MAKING DISTRICT COOPERATIVE MILK PRODUCERS

UNION.
During the year 2000-2001 out of 17 District Cooperative Milk Producers Unions
only 5 District Cooperative Milk Producers Unions earned profit. During the year 2002-
03, 10 District Cooperative Milk Producers Unions namely Erode,
Villupuram,Vellore,Trichy,Thanjavur, Sivagangai, Pudukkottai, Kanyakumari, Dindigul
and Coimbatore are working on profit.
AT FEDERATION LEVEL INTRODUCTION OF COMMON
MNEMONIC SYMBOL
The Common Mnemonic Symbol was introduced in Tamilnadu Cooperative Milk
Producers' Federation, Chennai on 12.11.2001 by National Dairy Development Board.
This has paved the way for popularizing the brand 'Shreeji' in a short span of time.
All the distribution vehicles at chennai are painted with mnemonic symbol in
elaborate to popularise the symbol. Advertisement in radio broadcast has been done
regularly.
The Nucleus Jersey and Stud Farm at Uthagamandalam have obtained ISO 9002 - 1994
Certificate in the year 2002-2003. Market promotion schemes such as prize and free gift
to consumers are introduced to counter private competitors and to encourage card holding
consumers.
27
GENERAL STATISTICS PERTAING TO DAIRY DEVELOPMENT
SECTOR
S. No.Items As on 31.3.2003
1. No. of Primary Milk Cooperative Societies 8486.
A) Milk Producers Cooperative Societies 8423
b) Milk supply Cooperative Society 1
c) Dairy Cooperative Farm 1
d) Milk Consumers' Cooperative Societies 60
e) Cooperative Milk Supply Union 1
2. Total number of functional societies 6980
3. Total number of Members in Primary Milk Cooperative Societies (In Lakhs) 22.21
4. Milk Production (by societies) 18.88 LLPD
5. No. of District Unions 17
6. State Level Federation 1
7. Milk Procurement (by Unions) 15.79 LLPD
8. Milk Marketing in Chennai City 6.53 LLPD
9. Milk Marketing in District Cooperative Milk Producers' Unions 5.98 LLPD
10. Number of Dairies 16
10(a) Handing Capacity of Dairies 18.76 LLPD
11. Number of Chilling Centres 39
11(a) Handling Capacity of Chilling Centres 12.83 LLPD
12. Automatic Vending Machine Units 217 VISION: 2003-2004
AT SOCIETY LEVEL-CLEAN MILK PRODUCTION
As per the direction of the Hon'ble Chief Minister of Tamil Nadu it is proposed to
select one milk route from each Union to educate the farmers on "Clean Milk Production"
and to implement clean milk production procedures in the Dairy Cooperative Societies
attached to that route.
AT FEDERATION LEVEL
It has been programmed to increase the sachet milk sale from 5.79 llpd. to 5.95
llpd and the bulk vending milk sale from 0.81 llpd to 0.95 llpd totally 6.90 llpd in
Chennai Metro in the year 2003-2004 by adopting the following strategies.
28
The marketing potential of the uncovered areas such as Tambaram extension, Maraimalai
Nagar, Poondamalle, Avadi, Tiruvallur, Kancheepuram, Kalpakkam, Guduvancheri,
Redhills etc., will be covered.The number of whole sale milk distributors will be
increased from 44 to 60.The whole sale distributors will be encouraged to engage more
number of retailers for increasing number of retail outlets from 800 to 1000.The
infrastructure facilities in Metro Dairies are getting strengthened.
The Metro Dairies will apply and secure HACCP (Hazard Analysis and Critical
Control Point) and go in for conversion from ISO-9002: 1994 to ISO-9001: 2000 version
in the year 2003-2004.
Customer care and support cell will organise regular consumer meetings, arrange
dairy visits and organise door to door canvassing for sale of milk cards.In order to ensure
timely supply with quality service, 10 special squads have been formed and functioning
under the direct control of Managing Director.
QUALITY CONTROL LABORATORY
A Quality Control Laboratory at the cost of Rs.69.78 lakhs on 100% subsidy from
the Central Government has been set up at the office of Commissioner for Milk
Production and Dairy Development. The above Laboratory function under the direct
control of Commissioner for Milk Production and Dairy Development. It analyses the
Milk and Milk Products samples collected from Private and Cooperative Dairies and
issues analysis certificate.
SUMMING UP
The rural farmers can approach the Dairy Development Department to form a
Primary Dairy Co-operative Society to get regular income for their livelihood.
Similarly, the enthusiastic youth and women can approach the District
Cooperative Milk Producers Union / Federation, get themselves registered as agents for
selling milk and milk products to the consumers and earn a regular income and enhance
their standard of living.
To cater to different needs of consumers,the Federation sells the following type of
milk to consumers in Chennai metro.
29
1.Standardised milk 4.5% and 8.5% S.N.F(Solid Not Fat)
2.Tonned milk 3% fat and 8.5% S.N.F
3.Full Cream milk 6% Fat and 9% S.N.F.
Gone are the days of controlled distribution of milk cards to the metro consumers.Now
Shreeji milk cards are available liberally to the consumers throughout the month.Apart
from the above,5 litre milk cards are also being issued to the teashop/canteens and to the
retail outlets through milk distributors in Chennai.At present 25 nos.of milk distributors
have been appointed and around 70000 litres of milk per day is being dispatched to the
milk distributors.Federation also caters to the need of consumer by booking special
orders for the supply of milk in connection with marriage functions etc.
SALE OF MILK PRODUCTS
Of the 17 District unions,Salem,Erode,Madurai and Dharmapuri unions have
feeder balancing Dairies.Surplus milk in other District unions after meeting the local
sale,commitment to Chennai metro and conversion of milk for reconstitution are being
diverted to the nearest Feeder Balancing Dairies converted into products.The Feeder
balancing dairies(FBDs)are producing butter,Skim milk powder(SMP)and ghee from the
surplus milk,after meeting the liquid milk demand.Apart from these products cheese is
being manufactured at Nilgiris union,milk,Flavoured milk and Malvin mango drink in
Tetra packs are being manufactured at Salem union and fun products like ice cream,
yogurt,khova are manufactured at Ayanavaram Dairy,Chennai which is under the control
of the Federation.The Federation under the brand name “Shreeji”markets the product.The
fun products are sold under “Shreeji goodness”.The Shreeji branded products are
agmarked as far as ghee and butter are concerned and ISI certified for SMP and
Cheese.Marketing of the products in Chennai metro and suburbs are directly carried out
by the Federation.Distribution network includes parlours;Franchise retails outlets (FROs),
wholesale dealers and milk consumer cooperative societies.The details of milk product
sold through CF Agents, bulk sales and Chennai Metro during the year 1999-2000 and
2000-2001(upto dec’2000)are furnished below
30
S.NO PRODUCTS 1999-2000 (MTS) 2000-2001(UP TO
DEC’2000)(MTS)
1. SMP 5146 3544
2. BUTTER 3592 2524
3. GHEE 4414 2954
INPUT PROGRAMME
The Milk producer’s cooperative societies are being formed at village level.In
these societies only the “Milk Producers”are enrolled as members.Milk produced by
these members is collected everyday both morning and evening and payments are made
to them on ‘quality basis’.After testing the milk supplied by each member, individually,
payment is made at approved rate.The animals owned by the producer members are
provided with animal health cover at the doorsteps of the members by the Veterinary
Assistant Surgeons of the Veterinary units,procurement teams and input wings.Breeding
covered through artificial insemination is also provided at a nominal rate.
In addition to the above the following major activities are undertaken by the TCMPF/
LTD/DCMPUs.
a)Provision of veterinary health cover to animals owned by the members of milk
cooperatives, implementation of artificial insemination programme, supply of balanced
cattle feed and induction of farmers to modern animal husbandry practices.All these
activities are aimed at upgrading the milch animals and thereby improving their
productivity in the long run.
Provision of necessary infrastructure ,for a large-scale procurement ,processing and
marketing of milk.This will include establishment of chilling centres,pasteurization plants
and modern marketing system,to meet the requirements of the consuming public.
31
1.2.2 PRODUCT PROFILE
Selling price of the different types of milk
In order to benefit the farmers in Tamilnadu by providing a remunerative price in the

milk procurement, the selling price of milk is fixed as detailed below:
Type of Milk Sachet A.V.M

Card Cash Card Cash
Toned Milk Rs.12.50 Rs.14.00
(Fat 3.0% SNF 8.5%)

Standardised Rs 14.50 Rs.16.00 Rs14.00 14.50
Milk
(Fat 4.5% SNF 8.5%)
Full Cream Milk Rs.16.50 Rs 18.00

(Fat 6% SNF 9.0%)
Tea Mate Milk Rs 15.00 Rs 13.00
(Fat 2.5%
SNF 10.5%)
32
SNF: Solid Non Fat
Color of the packet : Blue = Tone milk
Green = Standardised milk
Red = Full cream milk
Violet = Teamate milk
Pasteurised Toned Milk Standardized milk Full cream milk Double Toned Milk
Ghee tins-200 gms/500gms/1kg/2kg/5kg/15kg. carton pack -500gms/1kg sachets-50

gms/500gms.
Milk powder Carton-500gms poly bag-1 kg bulk bag -20kg.
Cheese chiplets-25gms/250gms.
Flavored Milk tetra pak package 200ml-strawberry-cardamom-chocolate-pineapple.
UHT Milk 1000ml(Tetra Brik Aseptic Package).500 ml (Tetra fino Aseptic package)
Ice-creams Vanilla,Strawberry,Chocolate,Pineapple,Blackcurrant,Pista,Badam,Chaco
risin,Mango,Butter Scotch,Tutti Frutti,Cups-50gms/100gms/500gms/1lit/1gallon sticks-
cones.
Milk Sweets Gulab Jamun,Mysur paku,Kalakandh,Cartons-500gms/1kg.
Butter Masala Butter Milk Salted-100 gms/200gms/500gms/20kg plain-
100gms/200gms/500gms/20kg Sachet-200 ml.
Mango Drink-MShreeji 200 ml (Tetra Brick aseptic Package)
Milk Khoa packets-500gms/100gms-/200gms/500gms Bulk-Un sugared Curd 200gms
cup.
33
CHAPTER 2
DATA ANALYSIS AND INTERPRETATION
TABLE: 2.1.1
BRANDS OF MILK
S. No. Particulars No. of Respondents Percentage of Respondents

1 AROKYA 120 60%
2 SHREEJI 54 27%
3 HERITAGE 26 13%
TOTAL 200 100%
CHART: 2.1.1
BRANDS OF MILK
120
100
80
60
40
20
0
AROKYA SHREEJI HERITAGE
INFERENCE:
From the above table we infer that 60% of the consumers prefer Shreeji
milk,27% of the consumers prefer arokya and 13% of the consumers prefer heritage milk.
34
TABLE: 2.1.2
CONSUMPTION OF MILK PER DAY
1 HALF LITRE AND 07 3.5%
LESS THAN HALF
2 ONE LITRE 78 39%
3 1 TO 2 LITRE 85 42.5%
4 MORE THAN 2 30 15%
LITRES
TOTAL 200 100%
CHART: 2.1.2
90
80
70
60
50
40
30
20
10
0
HALF LITRE ONELITRE 1-2 LITRE MORETHAN 2
AND LITRES
LESSTHAN
HALF
INFERENCE:
From the above table we infer that 3.5% of the consumer prefer1/2 litre and less than ½
litre ,39% of the consumers prefer 1 litre,42.5% of the consumers prefer 1-2 litre and
15% of the consumers prefer more than 2 litres daily.
35
TABLE: 2.1.3
CONSUMPTION OF MILK AND MILK PRODUCTS BY SHREEJI USER

1 LESS THAN 1 YEAR 03 2.5%
2 1-2 YEARS 42 35%
3 2-5 YEARS 20 16.5%
4 MORE THAN 5 55 46%
YEARS
TOTAL 120 100%
CHART: 2.1.3
60
50
40
30
20
10
0
LESS THAN 1 1 - 2 YEARS 2 - 5 YEARS MORETHAN 5
YEAR YEARS
INFERENCE:
From the above table we infer that 2.5% of the consumers prefer Shreeji milk less than
1yr,35% of the consumers prefer 1-2 yrs,16.5% of the consumers prefer 2-5yrs and 46%
of the consumers prefer more than 5 yrs.
36
TABLE: 2.1.4
AWARENESS OF SHREEJI MILK AND MILK PRODUCTS

1 MEDIA 10 8.5%
2 WORD OF MOUTH 48 40%
3 BANNERS 23 19%
4 LEAFLETS 03 2.5%
5 OTHERS 36 30%
TOTAL 120 100%
CHART: 2.1.4
50
45
40
35
30
25
20
15
10
0
No. of Respondents
INFERENCE:
From the above table we infer that 8.5% of the consumers were aware through
media,40% of the consumers were aware through word of mouth,19% through banners ,
2.5% through leaflets and 30% through others.
37
TABLE: 2.1.5
AVAILABILITY OF SHREEJI MILK AND MILK PRODUCTS

1 YES 105 87.5%
2 NO 15 12.5%
TOTAL 120 100%
CHART: 2.1.5
15 YES
NO
105
INFERENCE:
From the above table we infer that 87.5% of the consumers think Shreeji
milk and milk products are easily available and 12.5% of the consumers think Shreeji
milk and milk products are not easily available.
38
TABLE: 2.1.6
AWARENESS OF MILK SACHETS OF SHREEJI
1 YES 98 82%
2 NO 22 18%
TOTAL 120 100%
CHART: 2.1.6
22 YES
NO
98
INFERENCE:
From the above table we infer that 82% of the consumers are aware of the various types
of milk sachets of Shreeji and 18% of the consumers are not aware of various types of
milk sachets of Shreeji.
39
TABLE: 2.1.7
PREFERENCE OF MILK
1 TONED 36 30%
2 STANDARDISED 37 31%
3 FULL CREAM 38 31.5%
4 DIET 09 7.5%
TOTAL 120 100%
CHART 2.1.7
DIET 9
FULL CREAM 38
STANDARDISED 37
TONED 36
0 10 20 30 40
INFERENCE:
From the above table we infer that 30% of the consumers prefer toned milk,31% of the
consumers prefer standardised milk,31.5% of the consumers prefer full cream milk and
7.5% of the consumers prefer diet milk.
40
TABLE: 2.1.8
AWARENESS OF SHREEJI MILK PRODUCTS
1 YES 105 87.5%
2 NO 15 12.5%
TOTAL 120 100%
CHART: 2.1.8
S. No. 15 Particulars No. of Respondents Percentage of Respondents
1 BUTTER 07 6%
2 ICECREAM 11 YES
9%NO
3 CURD 27 22.5%
4 FLAVOUREDMILK 20 17%
5 CHEESE 04 105 3%
6 MILKSWEET 30 25%
7 GHEE 07 5.5%
8 BUTTERMILK 11 9%
9 MILKPOWDER 03 3%
TOTAL 120 100%
INFERENCE:
From the above table we infer that 87.5% of the consumers are aware of the various types
of milk products of Shreeji and 12.5% of the consumers are not aware of various types of
milk products of Shreeji.
41
TABLE: 2.1.9
PREFERENCE OF MILK PRODUCTS
CHART: 2.1.9
30
25
20
15
10
0
No. of Respondents
INFERENCE: From the above table we infer that 6% of the consumers prefer
butter,9% prefer ice cream,22.5% prefer curd,17% prefer flavoured milk,3% prefer
cheese ,25% prefer milksweet,5.5 prefer ghee,9% prefer butter milk,3% prefer milk
powder .
42
TABLE: 2.1.10
TYPE OF MEDIA SUITABLE FOR ADVERTISING MILK PRODUCTS
1 T.V 68 57%
2 Radio 23 19%
3 Newspaper 23 19%
4 Magazine 6 5%
TOTAL 120 100%
CHART 2.1.10
MAGAZINE 6
NEWSPAPER 23
RADIO 23
T.V. 68
0 20 40 60 80
INFERENCE:
From the above table we infer that 57% of the consumers say that advertisement should
be given in Tv,19% of the consumers say that advertisement should be given in
RADIO,19% of the consumers say that advertisement should be given in NEWSPAPER
and 5% of the consumers say that advertisement should be given in MAGAZINE.
43
TABLE: 2.1.11
INFLUENCER ON PURCHASE OF MILK PRODUCTS
1 Father 12 10%
2 Mother 53 44%
3 Husband 44 36%
4 Wife 8 7%
5 Children 3 3%
TOTAL 120 100%
CHART: 2.1.11
60
50
40
30
20
10
0
FATHER MOTHER HUSBAND WIFE CHILDREN
INFERENCE:
From the above table we infer that 10% of the consumers influenced by father,44%
influenced by mother,36% influenced by husband , 7% influenced by wife,3%
influenced by children .
44
TABLE: 2.1.12
LEVEL OF SATISFACTION TOWARDS THE PACKAGE OF SHREEJI MILK
1 Highly satisfied 32 27%
2 Satisfied 78 65%
3 Neutral 06 5%
4 Dissatisfied 01 1%
5 Highly dissatisfied 03 2%
TOTAL 120 100%
CHART 2.1.12
HIGHLY DISSATISFIED 3
DISSATISFIED 1
NEUTRAL 6
SATISFIED 78
HIGHLY SATISFIED 32
0 20 40 60 80 100
INFERENCE:
From the above table we infer that 27% of the consumers are highly satisfied,65% are
satisfied,5% are neutral , 1% are dissatisfied,3% are highly dissatisfied.
45
TABLE: 2.1.13
DO THE SHREEJI MILK PRODUCTS FULFILLS THE EXPECTATION
1 YES 101 84%
2 NO 19 16%
TOTAL 120 100%
CHART: 2.1.13
101
YES
19 NO
INFERENCE:
From the above table we infer that 84% of the consumers feels that Shreeji milk and
milk products fulfils their expectations and 16% of the consumers feels that Shreeji milk
and milk products does not fulfills their expectations
46
TABLE: 2.1.14
CHANGES EXPECTED FROM SHREEJI USERS
1 Quality 10 53%
2 Price 6 32%
3 Availability 2 10%
4 Variety 1 5%
TOTAL 19 100%
CHART: 2.1.14
20
18
16
14
12
10
8
6
4
2
0
QUALITY PRICE AVAILABILITY VARIETY
INFERENCE:
From the above table we infer that 53% of the consumers prefer that quality should be
improved,32% of the consumers prefer that price should be reduced,10% of the
consumers prefer that there should be more availiabilty and 5% of the consumers prefer
that there should be more varieties.
47
TABLE: 2.1.15
DO SHREEJI PRODUCTS ARE MORE HYGIENIC
1 YES 107 89%
2 NO 13 11%
TOTAL 120 100%
CHART: 2.1.15
107
YES
NO
13
INFERENCE:
From the above table we infer that 89% of the consumers think that Shreeji products are
more hygienic than others and 11% of the consumers do not think Shreeji products are
more hygienic than others.
48
TABLE: 2.1.16
WHERE DO YOU GET SHREEJI PRODUCTS
1 SHREEJI OUTLETS 30 25%
2 RETAIL OUTLETS 40 33%
3 GETTING DOOR 50 42%
DELIVERY
TOTAL 120 100%
CHART: 2.1.16
50
45
40
35
30
25
20
15
10
5
0
AAVIN RETAIL GETTING
OUTLETS OUTLETS DOOR
DELIVERY
INFERENCE:
From the above table we infer that 25% of the consumers buy in Shreeji outlets
and 33% of the consumers buy in retail outlets and 42% of the consumers get through
door delivery.
49
TABLE: 2.1.17
DURATION OF CONSUMPTION OF OTHER BRAND MILK
1 LESS THAN 1 YEAR 11 14%
2 1-2YEARS 42 52.5%
3 2-5YEARS 25 31%
4 MORE THAN 5 2 2.5%
YEARS
TOTAL 80 100%
CHART: 2.1.17
45
40
35
30
25
20
15
10
5
0
LESS THAN 1-2 2-5 MORE
1 YEAR YEARS YEARS THAN 5
YEARS
INFERENCE:
From the above table we infer that 14% of the consumers prefer other brand milk
for less than 1 year,52.5% of them consume for 1-2 years, 31% of them consume 2-5
years and 2.5% of them consume more than 5 years.
50
TABLE: 2.1.18
MODE OF AWARENESS OF OTHER BRAND MILK
1 MEDIA 25 31%
2 WORD OF MOUTH 20 25%
3 BANNERS 12 15%
4 LEAFLETS 18 23%
5 OTHERS 05 6%
TOTAL 80 100%
CHART 2.1.18
OTHERS 5
LEAFLETS 18
BANNERS 12
WORD OF MOUTH 20
MEDIA 25
0 5 10 15 20 25 30
INFERENCE:
From the above table we infer that 31% of the consumers were aware through media,25%
of the consumers were aware through word of mouth,15% through banners ,23% through
leaflets and 6% through others.
51
TABLE: 2.1.19
BASES ON CHOOSING OF BRAND
1 QUALITY 40 50%
2 PRICE 24 30%
3 AVAILABILITY 11 14%
4 VARIETY 05 6%
TOTAL 80 100%
CHART: 2.1.19
40
35
30
25
20
15
10
0
QUALITY PRICE AVAILABILITY VARIETY
INFERENCE:
From the above table we infer that 50% of the consumers chose this brand on the basis of
quality,30% of the consumers chose on the basis of price,14% of them chose on the basis
of availibilty and 6% of the consumers chose on the basis of variety
52
TABLE: 2.1.20
LEVEL OF SATISFACTION OF OTHER BRAND MILK
2 Satisfied 40 9%
3 Neutral 15 22.5%
4 Dissatisfied 04 17%
5 Highly dissatisfied 0 3%
TOTAL 80 100%
CHART 2.1.20
DISSATISFIED 4
NEUTRAL 15
SATISFIED 40
HIGHLY SATISFIED 21
0 10 20 30 40 50
INFERENCE:
From the above table we infer that 6% of the consumers are highly satisfied with the
packaging of this brand milk and milk products,9% are satisfied ,22.5% are neutral,17%
are dissatisfied and 3% are highly dissatisfied.
53
TABLE: 2.1.21
LEVEL OF SATISFACTION TOWARDS PACKAGE OF OTHER BRAND MILK

2 Satisfied 52 65%
3 Neutral 08 10%
4 Dissatisfied 02 2.5%
5 Highly dissatisfied 02 2.5%
TOTAL 80 100%
CHART 2.1.21
DISSATISFIED 2
NEUTRAL 8
SATISFIED 52
HIGHLY SATISFIED 16
0 10 20 30 40 50 60
INFERENCE:
From the above table we infer that 20% of the consumers are highly satisfied with the
brand,65% are satisfied ,10% are neutral,2.5% are dissatisfied and 2.5% are highly
dissatisfied.
54
TABLE: 2.1.22
PURCHASE OF SHREEJI MILK PRODUCTS OF OTHER BRAND USERS
1 YES 57 71%
2 NO 23 29%
TOTAL 80 100%
CHART: 2.1.22
57 YES
23
NO
INFERENCE:
From the above table we infer that 71% of other brand users have purchased Shreeji milk
and milk products and 29% have not purchased Shreeji milk and milk products.
55
TABLE: 2.1.23
PURCHASE OF SHREEJI MILK PRODUCT EARLIER BY OTHER BRAND
USER
1 LESS THAN 1 YEAR 25 44%
2 1-2YEARS 21 37%
3 2-5YEARS 11 19%
4 5 - 10 YEARS 0 0%
5 MORE THAN 10 0 0%
YEARS
TOTAL 57 100%
CHART 2.1.23
MORE THAN 10 YEARS 0
5 - 10 YEARS 0
2-5 YEARS 11
1-2 YEARS 21
LESS THAN 1 YEAR 25
0 5 10 15 20 25 30
INFERENCE:
From the above table we infer that 44% of other brand users have purchased Shreeji milk
and milk products less than 1 year,37% have purchased before 1-2 years,19% have
purchased before 2-5 years,0 % have purchased before 5-10 years and 0% have
purchased more than 10 years.
56
TABLE: 2.1.24
REASONS FOR SHIFTING FROM SHREEJI
1 PRICE 12 21%
2 QUALITY 30 53%
3 NON AVAILABILITY 11 19%
4 VARIETY 04 7%
TOTAL 57 100%
CHART: 2.1.24
30
25
20
15
10
0
PRICE NON
AVAILABILITY
INFERENCE:
From the above table we infer that 21% of other brand users have shifted from Shreeji
due to price,53% have shifted due to quality,19% have shifted due to non availibility,7%
have shifted due to variety.
57
TABLE: 2.1.25
WILLINGNESS TO SHIFT TO SHREEJI FROM OTHER BRANDS
1 YES 41 51%
2 NO 39 49%
TOTAL 80 100%
CHART: 2.1.25
41
YES
NO
39
INFERENCE:
From the above table we infer that 51% of other brand users are willing to shift to Shreeji
if Shreeji milk and milk products are made available near to them and 49% are not
willing to shift to Shreeji.
58
TABLE: 2.1.26
SEX
1 MALE 50 25%
2 FEMALE 150 75%
TOTAL 200 100%
CHART: 2.1.26
150
MALE
FEMALE
50
INFERENCE:
From the above table we infer that 25% of the consumers are male and and 75% are
female .
59
TABLE: 2.1.27
AGE
1 LESS THAN 18 03 1.5%
YEARS
2 18-30 YEARS 100 50%
3 30-50 YEARS 84 42%
4 MORE THAN 50 13 6.5%
YEARS
TOTAL 200 100%
CHART: 2.1.27
100
90
80
70
60
50
40
30
20
10
0
LESS THAN 18 - 30 30 - 50 MORE
18 YEARS YEARS YEARS THAN 50
YEARS
INFERENCE:
From the above table we infer that 1.5% of the consumers are less than 18 years ,50%
are 18-30 years,42% are 30-50 years,6.5% are more than 50 years.
60
TABLE: 2.1.28
OCCUPATION
1 PROFESSIONAL 61 30.5%
2 HOUSE WIFE 98 49%
3 STUDENT 18 9%
4 BUSINESSMAN 11 5.5%
5 OTHERS 12 6%
TOTAL 200 100%
CHART 2.1.28
OTHERS 12
BUSINESSMAN 11
STUDENT 18
HOUSE WIFE 98
PROFESSIONAL 61
0 20 40 60 80 100 120
INFERENCE:
From the above table we infer that 30.5% of the consumers are professionals ,49% are
house wife,9% are students,5.5% are businessmen and 6% are in other occupation.
61
TABLE: 2.1.29
MONTHLY INCOME
1 Less than 5000 00 0%
2 5000-10000 18 20%
3 10000-15000 48 53%
4 More than 15000 24 27%
TOTAL 90 100%
CHART: 2.1.29
50
45
40
35
30
25
20
15
10
5
0
LESS THAN 5000-10000 10000- MORE THAN
5000 15000 15000
INFERENCE:
From the above table we infer that 0% of the consumers get monthly income less than
5,000,20% get 5,000-10,000,53% get 10,000-15,000 and 27% get more than 15,000.
62
TABLE: 2.1.30
FAMILY MEMBERS
1 3 or less than 3 45 22.5%
2 3-4 99 49.5%
3 4-5 46 23%
4 More than 5 10 5%
TOTAL 200 100%
CHART: 2.1.30
100
90
80
70
60
50
40
30
20
10
0
3 OR LESS 4-Mar 5-Apr MORE
THAN 3 THAN 5
INFERENCE:
From the above table we infer that 22.5% are 3 or less than 3 members in the
family,49.5% are 3-4 members,23% are 4-5 members in the family and 5% are more than
5 members in the family.
63
2.2 STATISTICAL TOOL

2.2.1 WEIGHTED AVERAGE METHOD
THE ATTRIBUTES OF SHREEJI MILK AND SHREEJI MILK PRODUCTS.
TABLE: 2.2.1a
Types Rank Rank Rank Rank Total
1 2 3 4
It is pure 34 67 15 01 117
It is easily available 23 36 53 07 119
Competitive price 55 11 33 20 119
Varieties of Shreeji milk 06 04 16 89 115
to suit the requirements
Solution:
1. (34X4) + (67 X 3) + (15X2) +(1 x 1) = 368

2. (23X4) + (36 X 3) + (53X2) +(7 x 1) = 313
3. (55X4) + (11 X 3) + (33X2) +(20x1) = 339
4. (06X4) + (04 X 3) + (16X2) +(89x1) = 157
Total
Weighted Average:
Row Total
1 It is pure : 368/117 = 3.145

2 It is easily available :313/119 = 2.630
3 Competitive price : 339/119 = 2.848
4 Varieties of Shreeji milk to suit the requirements : 157/115 = 1.365
Types Value Rank
It is pure 3.145 1
It is easily available 2.630 3
Competitive price 2.848 2
Varieties of Shreeji milk to 1.365 4

suit the requirements
64
2.2.2 CHI SQUARE TEST
1. BASED ON GENDER & AWARENESS OF VARIOUS MILK PRODUCTS

OF SHREEJI
TABLE 2.2.2a
GENDER MALE FEMALE TOTAL

AWARENESS
YES 18 07 25
NO 85 10 95
TOTAL 103 17 120
HYPOTHESIS:
HO: There is no relationship between gender and awareness of various milk

products of Shreeji.
H1 : There is relationship between gender and awareness of various milk
products of Shreeji.
Oi Ei (Oi - Ei)2/Ei
18 21 0.428
07 04 2.225
85 82 0.1097
10 13 0.6923
TOTAL 3.455
Degree of freedom: (2-1) (2-1) = 1

Level of significance:
The table value of chi square for degree of freedom 1 at 5% level of significance is 3.841
Calculated Value < Tabulated value

3.455 < 3.841
Therefore, we ACCEPT HO.
Conclusion:
There is no relationship between gender and awareness of various milk products of
Shreeji.
65
2. BASED ON DURATION OF CONSUMPTION & PURCHASE OF MILK

PRODUCTS
TABLE 2.2.2b
LESS MORE THAN TOTAL

DURATION THAN 2 2 YEARS
PURCHASE YEARS
EARLY
LESS THAN 2 YEARS 20 21 41
MORE THAN 2 YEARS 8 10 18
TOTAL 28 31 59
HYPOTHESIS:
HO: There is no relationship between duration and purchase of Shreeji

products earlier.
H1: There is relationship between duration and purchase of Shreeji
products earlier.
Oi Ei (Oi - Ei)2/Ei
20 19 0.0526
21 22 0.0454
08 02 2.0000
10 09 0.1111
Total 2.2091
Degree of freedom: (2-1) (2-1) = 1

Level of significance:
The table value of chi square for degree of freedom 1 at 5% level of significance is 3.841
Calculated Value < Tabulated value

2.2091 < 3.841
Therefore, we ACCEPT H0.
Conclusion:
There is no relationship between duration and purchase of Shreeji products earlier.
66
2.2.3 ANOVA
1. BASED ON BRAND & INCOME
TABLE 2.2.3a
BR QUALITY PRICE AVAILABILTY VARIETY TOTAL
ANDS
INCOME
LESS THAN 19 08 02 01 30
20000
ABOVE 20000 05 02 03 01 11
TOTAL 24 10 05 02 41
HYPOTHESIS:
HO : There is no relationship in brands.

H1O: There is no relationship in income.
H1 : There is relationship in brands.
H11: There is relationship in income.
1. Correction factor (C.F)= T2 / N

= 412/8 = 210.125
2. ∑ ∑xij2 = 469
3. ∑Ti2 / n = 1021/4 = 255.25
∑Tj2 / k = 705/2 = 352.5
4. Total sum of square (TSS) = 469 – 210.125 = 258.8
5. Sum of Square between Row (SSR) = 255.25 – 210.125 = 45
6. Sum of Square between Column (SSC) = 352.5 – 210.125 = 142.25
7. Error sum of Square (ESS) = TSS – SSR – SSC
= 258.8 – 45 – 142.25
=71.5.
8. Mean Sum of Square:
MSR = SSR / K – 1
= 45 / 1 = 45
MSC = SSC / n – 1
= 142.25 / 3 = 47.41
MSE = ESS / (k - 1) (n - 1)
67
= 71.5 / (1) (3)
= 23.83
9. FR = MSR / MSE
= 45 / 23.83
= 1.588
FC = MSC / MSE
= 47.41 / 23.83
=1.989
FR = (k – 1, (n -1) (k - 1)) = (1, 3) = 10.1

FC = (n – 1, (n -1) (k - 1)) = (1, 3) = 10.1.
There fore Accept HO & H1O
Conclusion:
HO : There is no relationship in brands.

H1O: There is no relationship in income.
68
ANOVA
2. BASED ON GENDER& THEIR SATISFACTION.
TABLE 2.2.3b
SATISFATION SATISFACTION NEUTRAL DISSATISFACTION TOTAL
GENDER
MALE 18 03 02 23
FEMALE 50 04 03 57
TOTAL 68 07 05 80
HYPOTHESIS:
HO : There is no relationship in gender.

H1O: There is no relationship in their level of satisfaction.
H1 : There is relationship in gender.
H11 : There is relationship in their level of satisfaction.
1. Correction factor (C.F) = T2 / N

= 802/6 = 1066.66.
2.∑ ∑xij2 = 2862
3. ∑Ti2 / n = 3778/3 = 1259.33
∑Tj2 / k = 4698/2 = 2349
4. Total sum of square (TSS) = 2862 – 1066.66 = 1795.34
5. Sum of Square between Row (SSR) = 1259.33 – 1066.66 = 192.67
6. Sum of Square between Column (SSC) = 2349 – 1066.66 = 1282.34
7. Error sum of Square (ESS) = TSS – SSR – SSC
= 1795.34 – 192.67 – 1282.34
=320.33.
8. Mean Sum of Square:
MSR = SSR / K – 1
= 192.67 / 1 = 192.67
MSC = SSC / n – 1
= 1282.34 / 2 = 641.17
MSE = ESS / (k - 1) (n - 1)
69
= 320.33 / (1) (2)

= 160.165
9. FR = MSR / MSE
= 192.67 / 160.165
= 1.202
FC = MSC / MSE
= 641.17 / 160.165
= 4.04
FR = (k – 1, (n -1) (k - 1)) = (1, 2) = 18.5

FC = (n – 1, (n -1) (k - 1)) = (1, 2) = 18.5.
There fore Accept HO & H1O
Conclusion:
HO : There is no relationship in gender.

H1O: There is no relationship in their level of satisfaction.
70
CHAPTER III
3.1 FINDINGS
 It is observed that 60% of the consumers prefer Shreeji milk,27% of the

consumers
prefer arokya and 13% of the consumers prefer heritage milk.
 It is observed that 3.5% of the consumer prefer1/2 litre and less than ½ litre ,39%
of the consumers prefer 1 litre,42.5% of the consumers prefer 1-2 litre and 15% of
the consumers prefer more than 2 litres daily.
 It is observed that 2.5% of the consumers prefer Shreeji milk less than 1yr,35% of
the consumers prefer 1-2 yrs,16.5% of the consumers prefer 2-5yrs and 46% of
the consumers prefer more than 5 yrs.
 It is observed that 8.5% of the consumers were aware through media,40% of the
consumers were aware through word of mouth,19% through banners ,2.5%
through leaflets and 30% through others.
 It is observed that 87.5% of the consumers think Shreeji milk and milk products
are easily available and 12.5% of the consumers think Shreeji milk and milk
products are not easily available.
 It is observed that 82% of the consumers are aware of the various types of milk
sachets of Shreeji and 18% of the consumers are not aware of various types of
milk sachets of Shreeji.
 It is observed that 30% of the consumers prefer toned milk,31% of the consumers
prefer standardised milk,31.5% of the consumers prefer full cream milk and 7.5%
of the consumers prefer diet milk.
 It is observed that 87.5% of the consumers are aware of the various types of milk
products of Shreeji and 12.5% of the consumers are not aware of various types of
milk products of Shreeji.
 It is observed that 6% of the consumers prefer butter,9% prefer ice cream,22.5%

prefer curd,17% prefer flavoured milk,3% prefer cheese ,25% prefer
milksweet,5.5 prefer ghee,9% prefer butter milk,3% prefer milk powder .
 It is observed that 57% of the consumers say that advertisement should be given
in Tv,19% of the consumers say that advertisement should be given in
RADIO,19% of the consumers say that advertisement should be given in
71
 NEWSPAPER and 5% of the consumers say that advertisement should be given

in MAGAZINE.
 It is observed that 10% of the consumers influenced by father,44% influenced by

mother,36% influenced by husband , 7% influenced by wife,3% influenced by
children .
 It is observed that 27% of the consumers are highly satisfied,65% are satisfied,5%
are neutral , 1% are dissatisfied,3% are highly dissatisfied.
 It is observed that 84% of the consumers feels that Shreeji milk and milk
products fulfils their expectations and 16% of the consumers feels that Shreeji
milk and milk products does not fulfills their expectations
 It is observed that 53% of the consumers prefer that quality should be

improved,32% of the consumers prefer that price should be reduced,10% of the
consumers prefer that there should be more availiabilty and 5% of the consumers
prefer that there should be more varieties.
 It is observed that 89% of the consumers think that Shreeji products are more
hygienic than others and 11% of the consumers do not think Shreeji products are
more hygienic than others.
 It is observed that 25% of the consumers buy in Shreeji outlets and 33% of the
consumers buy in retail outlets and 42% of the consumers get through door
delivery.
 It is observed that 14% of the consumers prefer other brand milk for less than 1
year,52.5% of them consume for 1-2 years, 31% of them consume 2-5 years and
2.5% of them consume more than 5 years.
 It is observed that 31% of the consumers were aware through media,25% of the
consumers were aware through word of mouth,15% through banners ,23%
through leaflets and 6% through others.
 It is observed that 50% of the consumers chose this brand on the basis of
quality,30% of the consumers chose on the basis of price,14% of them chose on
the basis of availibilty and 6% of the consumers chose on the basis of variety
 It is observed that 6% of the consumers are highly satisfied with the packaging of
this brand milk and milk products,9% are satisfied ,22.5% are neutral,17% are
dissatisfied and 3% are highly dissatisfied.
72
 It is observed that 20% of the consumers are highly satisfied with the brand,65%
are satisfied ,10% are neutral,2.5% are dissatisfied and 2.5% are highly
dissatisfied.
 It is observed that 71% of other brand users have purchased Shreeji milk and milk
products and 29% have not purchased Shreeji milk and milk products.
 It is observed that 44% of other brand users have purchased Shreeji milk and milk
products less than 1 year,37% have purchased before 1-2 years,19% have
purchased before 2-5 years,0 % have purchased before 5-10 years and 0% have
purchased more than 10 years.
 It is observed that 21% of other brand users have shifted from Shreeji due to
price,53% have shifted due to quality,19% have shifted due to non availibility,7%
have shifted due to variety.
 It is observed that 51% of other brand users are willing to shift to Shreeji if
Shreeji milk and milk products are made available near to them and 49% are not
willing to shift to Shreeji.
 It is observed that 25% of the consumers are male and and 75% are female .
 It is observed that 1.5% of the consumers are less than 18 years ,50% are 18-30
years,42% are 30-50 years,6.5% are more than 50 years.
 It is observed that 30.5% of the consumers are professionals ,49% are house
wife,9% are students,5.5% are businessmen and 6% are in other occupation.
 It is observed that 0% of the consumers get monthly income less than 5,000,20%
get 5,000-10,000,53% get 10,000-15,000 and 27% get more than 15,000
 It is observed that 22.5% are 3 or less than 3 members in the family,49.5% are 3-4
members,23% are 4-5 members in the family and 5% are more than 5 members in
the family.
73
3.2 SUGGESTIONS
 The consumers feel that the price of the full cream milk should be reduced.
 The researcher suggests that the thickness of toned milk should be improved.
 The researchers suggests to increase the number of AVM booth to satisfy more
number of customers.
 The researchers suggests that more number of retail outlets to be opened in rural
areas to attract more customers.
 Effective marketing and campaigning should be done to yield more number of
customers.
74
3.3 CONCLUSION
The outcome of the study shows that the consumers response is fair.The quality of the
toned milk should be improved.Customer care cell should work more effective.The
number of AVM booth and retail outlets should be increased in urban and rural areas to
yield more customers.Periodical inspection should be done to root out the arising
malpractices.The preserveness of milk process should be improved to avoid quick
spoilage of milk and milk products.Effective marketing and campaigning has to be done
in rural areas so that customers would be well aware about Shreeji milk and milk
products.
A STUDY ON CUSTOMERS PREFERENCE OVER MILK AND
MILK PRODUCTS-WITH REFERENCE TO SHREEJI
Questionnaire
I am B.Christina Subhashini an MBAstudent of St.Peter’s Engineering College

doing A study on Customers preference over milk and milk products -with
reference to Shreeji .Please spare your valuable time in filling this questionnaire
which would be very useful for my research study strictly assured information
collected from you will be kept confident and will be used only for academic
purpose only.
Thanking you
B.CHRISTINA SUBHASHINI
PART A
1.Name the brand of milk and milk products that you consume?
a)Shreeji b)arokya
c)Heritage d)Jercy e)others……………………
2.How much quantity of milk do you consume daily?

a)1/2 litre and less than ½ b)1 litre c)1-2litre d)more than 2litres
If Shreeji please continue otherwise go to question no.19
3.How long are you consuming Shreeji milk and Shreeji milk products?
a)Less than1 year b)1-2 years
c)2-5years e)More than 5 years
4.How did you come to know about Shreeji milk and milk products?
a)Media b)Word of mouth c)Banners
d)Leaflets e)Others
5.Do you think Shreeji milk and milk products are easily available?
a)Yes b)No
6.Are you aware of the various types of milk sachets of Shreeji?

a)Yes b)No
7.Which type of milk do you prefer?

a)Toned milk b)Standardized milk
c)Full cream milk d)Diet milk
8.Are you aware of the various milk products of Shreeji?

a)Yes b)No
9.Which milk products do you prefer the most?

a)Butter b)Ice cream c)Curd
d)Flavoured milk e)Cheese f)Milk sweet
g)Ghee h)Buttermilk i)Milk powder
10.Rank the attributes of Shreeji milk and Shreeji milk products.

a)It is pure []
b)It is easily available []
c)Competitive price []
d)Varieties of Shreeji milk to suit the requirements [ ]
11. Which media is more suitable for advertising milk and milk products to
enhance the sales?
a)T.V b)Radio c)Newspaper d)Magazine.
12.Who influence the purchase of milk and milk products of your family.
a)Father b)Mother c)Husband
d)Wife e)Children
13.Whether you are satisfied with the packaging of Shreeji milk and milk
products.
a)Highly satisfied b)Satisfied c)Neutral
d)Dissatisfied e)Highly dissatisfied
14.Do you feel Shreeji milk and milk products fulfills all your expectations.
a)Yes b)No
15.If no what are the changes do you expect?

a)Quality b)Price
c)Availibility d)Variety
16.Do you think Shreeji products are more hygienic than others?
a)Yes b)No
17.Where do you buy Shreeji milk and milk products?

a)Shreeji outlets b)Retail outlets c)Getting door delivery
18.Suggessions to improve Shreeji milk and milk products……………

IF NOT SHREEJI
19.How long are you consuming this brand milk?

a)Less than 1 year b)1-2years c)2-5years
d)More than 5 years
20.How did you come to know about the brand?

a)Media b)Word of mouth c)Banners
d)Leaflets e)Others
21.On what basis did you choose this brand?

a)Quality b)Price
c)Availability d)Variety
22.Whether you are satisfied with the packaging of this brands milk and milk
products?
d)Dissatisfied e)Highly dissatisfied
23.Whether you are satisfied with this brand?

d)Dissatisfied d)Highly dissatisfied
24.Whether you have purchased Shreeji milk and milk products earlier.
a)Yes b)No
25.If yes,when you have purchased early.

a)Less than 1 year b)1-2years c)2-5years
d)5-10years e)More than 10years
26.Reasons for shifting from Shreeji.

a)Price b)Quality
c)Non availability d)Variety
27.If Shreeji milk and milk products are made available near to you,will you shift
to Shreeji.
a)Yes b)No
PART 2
1.Name :
2.Address :
3.Sex
a)Male b)Female
4.Age
a)Less than 18 years b)18-30 years
b)30-50 years d)More than 50 years
5.Occupation
a)Professional b)House wife c)Student
d)Businessman e)Others
6.Monthly income
a)Less than 5,000 b)5000-10000
c)10000-15000 d)More than 15000
7.Number of members in the family

a)3 or less than 3 b)3-4
c)4-5 d)More than 5
REFERENCE
1.Marketing -CROCIER’S ARCOT

2.Customer satisfaction -KARTHIRESAN AND DR.RADHA
3.Marketing Management -GARY ARMSTRONG,PHILIP KOTLER
4.Research Methodology -KOTHARI
WEBSITE -WWW.Shreeji.com

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A STUDY ON CUSTOMERS PREFERENCE OVER MILK AND

MILK PRODUCTS WITH REFERENCE TO SHREEJI MILK

FOODS PVT LTD

FACULTY OF MANAGEMENT STUDIES

IN PARTIAL FULLFILMENT OF THE REQUIREMENT

FOR THE AWARD OF THE DEGREE

MASTERS OF BUSINESS ADMINISTRATION

Faculty Guide Director

Internal Examiner External Examiner

According to Philip kotler”Marketing management is the analysis,

S.NO TITLE PAGE NO

2.1.1 BRANDS OF MILK 33

2.1.15 DO SHREEJI PRODUCTS ARE MORE HYGEINIC. 47

S.NO TITLE PAGE NO

2.1.16 WHERE DO YOU GET SHREEJI PRODUCTS 48

2.1.15 DO SHREEJI MILK PRODUCTS ARE MORE 47

S.NO TITLE PAGE NO

A study on customers preference of milk and milk products with

1.1.1 NEED FOR THE STUDY

Management needs to know the customer preference information

1.1.2 SCOPE OF THE STUDY

The study aims to find the customers preference of milk an

the customers’s likes and dislikes,their expectations,personal decisions and family

months and has focused on all type of customers.

1.1.3 OBJECTIVES OF THE STUDY

1.1.4 LIMITATIONS OF THE STUDY

 The responses given by the respondents may not be true.

 The respondents may be careless in responding to the questionnaire.

 The respondents may be illiterate.

Research in common parlance refers to a search for knowledge.One can also

ABOUT THE FEDERATION:

TWO FOLD OBJECTIVES OF THE DAIRY DEVELOPMENT

REHABILITATION OF UNIONS 9th FIVE YEAR PLAN-CENTRAL

ISSUE OF UNIFORMS TO EMPLOYEES OF PRIMARY CO-OP.

195 Milk Producers Cooperative Societies have been organised up to 31.03.2003.

AT DISTRICT COOPERATIVE MILK PRODUCERS UNIONS

PROFIT MAKING DISTRICT COOPERATIVE MILK PRODUCERS

1.2.2 PRODUCT PROFILE

Selling price of the different types of milk

In order to benefit the farmers in Tamilnadu by providing a remunerative price in the

Type of Milk Sachet A.V.M

(Fat 3.0% SNF 8.5%)

Full Cream Milk Rs.16.50 Rs 18.00

Ghee tins-200 gms/500gms/1kg/2kg/5kg/15kg. carton pack -500gms/1kg sachets-50

S. No. Particulars No. of Respondents Percentage of Respondents

S. No. Particulars No. of Respondents Percentage of Respondents

S. No. Particulars No. of Respondents Percentage of Respondents

S. No. Particulars No. of Respondents Percentage of Respondents

S. No. Particulars No. of Respondents Percentage of Respondents

MORE THAN 10 YEARS 0

LESS THAN 1 YEAR 25

2.2 STATISTICAL TOOL

1. (34X4) + (67 X 3) + (15X2) +(1 x 1) = 368

1 It is pure : 368/117 = 3.145

Types Value Rank

It is easily available 2.630 3

Competitive price 2.848 2

Varieties of Shreeji milk to 1.365 4

2.2.2 CHI SQUARE TEST

1. BASED ON GENDER & AWARENESS OF VARIOUS MILK PRODUCTS

GENDER MALE FEMALE TOTAL

TOTAL 103 17 120

HO: There is no relationship between gender and awareness of various milk